Fund manager BML Funds, which has $1 billion in assets under management, is to be wound up as its chief investment officer Ted Alexander moves to Platinum Asset Management.
It was announced on 25 February that Alexander would be joining the $10 billion firm as the new portfolio manager of its Platinum International Fund.
This will see him take over portfolio manager responsibilities from Andrew Clifford and Clay Smolinski, who are stepping down from their management and co-chief investment officer duties.
On a results webinar, Platinum CEO Jeff Peters was asked about the appointment of the new manager.
“BML is currently being wound down including the mandates it holds and Ted is joining us with 100 per cent commitment to Platinum,” he said.
As well as Alexander, BML’s portfolio manager Ying Luo will also be joining Platinum.
BML describes itself as an independent boutique firm that manages $1 billion in international asset portfolios for its clients.
Speaking to Money Management, Alexander said the assets held by the fund manager would be returned to BML investors. The decision to wind up the firm had been taken following his decision to join Platinum, he said.
“Client money in the BML funds is being returned to investors. No funds will be directly transferred to the Platinum International fund although we hope our investors will choose to support Platinum International fund going forward,” he said.
“BML also has a mandate from the Federal Court in relation to Brite Advisors, this will cease at the end of the legal case. This is not an active management mandate but an administrative role prescribed by court orders.”
Brite Advisors was a global advisory group that saw its assets frozen by the Federal Court in October 2023 as ASIC was concerned the firm’s financial position had not been disclosed despite the firm holding an AFSL.
The court ordered that Brite Advisors be wound up on just and equitable grounds with McGrathNicol receivers Linda Smith and Robert Kirman appointed as liquidators.
Alexander said the legal case regarding Brite Advisors is expected to end in the first half of 2025.
Regarding his move to Platinum, research house Morningstar said that he lacks the name recognition of Clifford and Smolinski that could cause uncertainty among Platinum’s investors.
Prior to joining BML, he worked as a portfolio manager at Magellan and Orca Funds.
“Ted Alexander, who will manage the Platinum International Fund and other global strategies, has a decent track record from prior roles at BML, Orca, Magellan, and Neptune. However, he is not as well known as Clifford and Smolinski. Alexander will need to demonstrate maintained outperformance over benchmark and peers, and restore confidence among asset consultants – both challenging goals we do not expect to be met in the medium term,” Morningstar equity analyst Shaun Ler said.
